According to various reports, food delivery firm Zomato raised its platform charge by almost 43% before Diwali celebrations, from INR 7 to INR 10 per order, in order to “keep Zomato running” and preserve services during the holiday season. Similarly another media report cited that Swiggy, another major competitor in the sector, also raised its fee to INR 10. The current charge for these platforms is 400% higher than the INR 2 per order platform fee that was first implemented in August 2023.
In places like Delhi and Bengaluru, Zomato raised their platform cost by 20% earlier in July, from INR 5 to INR 6 per order. According to Zomato’s annual report for the fiscal year 2022–2023, 647 million orders were placed overall. According to a rough estimate, the business may make an additional INR 5.7 million a day if the platform raise were implemented nationwide.
Food Lovers Express Their Disappointment at X
During the holiday rush, Zomato and Swiggy raised their platform fees, which infuriated foodies. Although the move to raise the platform charge did not sit well with users, the nation’s two largest food delivery apps are aiming to profit from an increase in orders during the holiday season.
The updated platform charge was the subject of debate on social networking site X. Ordering in has become too costly to be sustainable, as noted by several X users, and meal delivery fees have been steadily rising.
In August 2023, Zomato started charging INR 2 per order as a platform charge. Zomato increased the platform fee to INR 4 per order by January 2024. At the moment, each order costs INR 10. All users, including Gold members, are subject to the platform fee, which is in addition to Zomato’s delivery fee.
The Platform Fee Does Not Have a Set Formula
Zomato’s Chief Financial Officer, Akshant Goyal, stated during the company’s first quarter earnings call for FY25 that the platform charge is being changed “step by step” in order to determine how sensitive customers are to price adjustments. There is no set formula for the platform fee, Goyal had stated at the time, in reference to the likelihood of greater fees on days when there are more orders.
Zomato’s Current Financial Performance
On October 22, Zomato, headed by Deepinder Goyal, released its September quarter results. The company’s operating revenue increased 68% year over year to INR 4,799 crore.The fastest-growing quick commerce sector was the main driver of the total growth, although Zomato’s biggest source of income and profits, the meal delivery company, had a 21% increase in gross order value year over year to INR 9,690 crore.
Because it was a seasonally bad quarter, Zomato’s food delivery company saw take rates drop sequentially by 20 basis points to 24.1% during the July–September period. According to industry observers, there is little chance that the rise in platform fees imposed by food delivery businesses will affect customer behaviour. According to Zomato’s fiscal 2024 annual report, platform fees brought in INR 83 crore for the company.
Co-founder and CEO of Zomato, a meal delivery service, Deepinder Goyal, has launched a new business called “Continue” to enter the health and mental fitness sector. However, the company has already cleared that Zomato will work as a separate business entity.
The new company’s registration name is “Unslope Advisors Private Ltd.” The company was founded on April 7, 2024, and has two promoters, Goyal and Ashish Goel, according to Registrar of Companies (RoC) papers that a media source was able to access. They gave the business an initial investment of INR 50 lakh.
Organisational Framework
Goyal is listed as a director in the company’s filings with the Ministry of Corporate Affairs (MCA), and Akriti Mehta and Simrandeep Singh, who are employees of Zomato, serve as additional directors. Singh joined Zomato six years ago, while Mehta has worked with the company for seven years.
Although his precise function has not been made clear, Ashish Goel, a former executive from Zomato and Blinkit, is also a part of Continue. The business has INR 50 lakh in authorised and paid-up capital, according to records. The paid-up capital is the amount that shareholders have paid, whereas the authorised capital is the utmost number of shares that the company can issue.
Giving Priority to Health and Wellness
Continue will emphasise numerous health objectives, including preventive health measures, nutrition, sleep monitoring, and mental wellness. The venture’s focus is in line with Goyal’s personal interest in longevity and prolonging human lifespan.
Goyal clarified in an online statement that Continue acts as his personal wellness and health team, assisting him in maintaining his best performance. He also mentioned that the company is developing new tools and insights and that once they have enough proof, they may decide to make their discoveries public.
Companions in Business and Industry
Goyal has already invested in other businesses, such as Ultrahuman, a firm that makes wearables that analyse fitness variables like heart rate, sleep, and nutrition. Continue is his most recent venture into the health and wellness sector.
Since making his initial investment in Ultrahuman in 2021, Goyal has grown his ownership of the business, now owning more than 8%, according to the most recent data. With initiatives like Fitso, which was eventually acquired by Curefit, Zomato’s CEO has already demonstrated an interest in health and fitness. Other former Zomato executives have also started their own health-related businesses, such as co-founders Pankaj Chaddah (Shyft) and Gaurav Gupta (Gabit), both of which have drawn a lot of interest from investors.
Zero Effect on Zomato’s Revenue
Goyal clarified that Zomato is not a part of Continue and is still concentrating on its primary business segments, which include food delivery, Blinkit, Hyperpure, and District, notwithstanding the debut of the new initiative. According to a Zomato representative, the company is not expanding into new markets and operates completely independently of Continue.
Due to a growing middle class, rising internet usage, and shifting lifestyles, India’s food delivery market has experienced exponential growth in recent years. These startups guarantee that delicious meals will arrive at your door quickly, whether you are craving international or traditional Indian cuisine. The top ten food delivery startups in India that are changing the food scene are detailed in this detailed guide:
Swiggy, founded in 2014, is one of the leading food delivery startups in India. It was established by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini. Swiggy has successfully expanded its operations to numerous cities across India and has partnered with thousands of restaurants.
Key Features
Real-time Order Tracking: Allows users to track their orders in real-time.
Extensive Restaurant Network: Partnerships with a wide range of restaurants.
Swiggy Genie: Offers additional services like picking up and delivering packages.
Impact
Swiggy has transformed the food delivery landscape with its efficient delivery system and customer-centric approach. The platform ensures timely deliveries and a variety of food options, making it a top choice for food lovers.
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, started as a restaurant search and discovery service. It quickly evolved into a food delivery giant, competing head-to-head with Swiggy.
Key Features
Comprehensive Restaurant Listings: Detailed information about restaurants, including reviews and ratings.
Zomato Gold: Membership program offering exclusive discounts and offers.
Global Presence: Operations in several countries beyond India.
Impact
Zomato has significantly enhanced the food delivery experience with its user-friendly interface and extensive restaurant partnerships. The platform’s reviews and ratings system helps users make informed decisions.
Dunzo
Website
www.dunzo.com
Rating
4.7
Founded
2014
Platforms
Web, IOS/Android
Dunzo – Top Food Delivery Startups in India
Dunzo, founded in 2015 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, is a hyperlocal delivery service. While it delivers groceries, medicines, and other essentials, its food delivery service is highly popular.
Key Features
Multi-utility Service: Delivers a wide range of items, not just food.
Quick Deliveries: Known for its fast and efficient delivery system.
User-friendly App: Easy-to-use interface with real-time tracking.
Impact
Dunzo has carved a niche in the food delivery market with its versatile service offerings. It provides a seamless delivery experience, making it a go-to option for many users.
Box8
Website
www.box8.in
Rating
4.6
Founded
2012
Platforms
Web, IOS/Android
Box8 – Top Food Delivery Startups in India
Box8, founded in 2012 by Anshul Gupta and Amit Raj, is a food delivery startup specializing in Indian meals. The company focuses on delivering freshly prepared, wholesome meals.
Key Features
Indian Cuisine Focus: Specializes in Indian meals prepared with fresh ingredients.
All-in-One Meal Boxes: Offers meal boxes that include a main course, sides, and dessert.
Quick Delivery: Ensures that food is delivered hot and fresh.
Impact
Box8 has gained popularity for its focus on Indian cuisine and quality meals. The startup’s commitment to delivering fresh and tasty food has made it a favorite among Indian food lovers.
FreshMenu
Website
www.freshmenu.com
Rating
4.5
Founded
2014
Platforms
Web, IOS/Android
FreshMenu – Top Food Delivery Startups in India
FreshMenu, founded in 2014 by Rashmi Daga, is a food delivery startup that offers gourmet meals prepared by professional chefs. The company focuses on delivering high-quality, freshly prepared food.
Key Features
Gourmet Meals: Offers a variety of gourmet dishes prepared by expert chefs.
Daily Menu: Features a changing menu with new dishes every day.
Fresh Ingredients: Emphasizes the use of fresh and high-quality ingredients.
Impact
FreshMenu has redefined the food delivery experience with its focus on gourmet meals. The startup’s dedication to quality and taste has earned it a loyal customer base.
Faasos
Website
www.eatsure.com
Rating
4.1
Founded
2011
Platforms
Eatsure, Swiggy, Zomato
Faasos – Top Food Delivery Startups in India
Faasos, founded in 2011 by Jaydeep Barman and Kallol Banerjee, is a food delivery startup known for its wraps and rolls. The company has since expanded its menu to include a variety of Indian and international dishes.
Key Features
Diverse Menu: Offers a wide range of dishes, including wraps, rice bowls, and desserts.
Quick Service: Known for its fast and efficient delivery.
Innovative Packaging: Uses eco-friendly and convenient packaging.
Impact
Faasos has made a mark in the food delivery industry with its diverse menu and quick service. The startup’s innovative approach to food delivery has resonated with customers across India.
Oven Story, founded in 2016, is a food delivery startup specializing in pizzas. The company focuses on delivering a variety of gourmet pizzas with unique toppings and flavors.
Key Features
Gourmet Pizzas: Offers a range of pizzas with diverse toppings.
Customized Orders: Allows customers to customize their pizzas.
Quick Delivery: Ensures timely delivery of hot and fresh pizzas.
Impact
Oven Story has become a favorite among pizza lovers for its gourmet offerings and customization options. The startup’s commitment to quality and taste has set it apart in the competitive food delivery market.
MojoPizza
Website
www.mojopizza.in
Rating
4.7
Founded
2017
Platforms
Web, IOS/Android
MojoPizza – Top Food Delivery Startups in India
MojoPizza, part of the Box8 family, was established to revolutionize pizza delivery in India. It offers a variety of pizzas with generous toppings and quick delivery.
Key Features:
Variety of pizza options
Generous toppings
Quick service
Attractive offers
Biryani By Kilo (BBK)
Website
www.biryanibykilo.com
Rating
4.7
Founded
2015
Platforms
Web, IOS/Android
Biriyani by Kilo – Top Food Delivery Startups in India
Biryani By Kilo, founded by Kaushik Roy and Vishal Jindal in 2015, focuses on delivering a wide range of biryanis cooked in traditional handis. The startup ensures that each order is prepared fresh upon request.
Key Features:
Freshly prepared biryanis
Variety of regional biryanis
Traditional cooking methods
Quality ingredients
India’s food delivery market is dynamic and varied, with new businesses constantly coming up with new ideas to satisfy customers. These top 9 food delivery startups in India offer a wide range of options to satiate your cravings, whether you are looking for quick snacks, healthful options, or gourmet meals. These businesses have revolutionized food delivery by utilizing cutting-edge technology and providing exceptional customer service.
FAQ
How many food delivery startups are there in India?
India has over 500 food delivery startups, including major players like Swiggy, Zomato, and many regional platforms.
Who is the leader of food delivery in India?
Swiggy is the leader in food delivery in India, followed closely by Zomato.
Why did Uber Eats fail in India?
Uber Eats failed in India due to fierce competition from local giants like Swiggy and Zomato, which had a stronger market presence. Additionally, Uber Eats struggled with high operational costs and an inability to gain significant market share, leading to its sale to Zomato in 2020.
Which is the fastest food delivery service in India?
Swiggy is often considered the fastest food delivery service in India, thanks to its large delivery network and technology-driven operations. Zomato also provides quick service, especially in major cities, but Swiggy tends to lead in terms of speed and efficiency.
Zomato has become the first digital marketplace to address the issue of distinguishing between real and artificial graphics by announcing that it will prohibit the use of images generated by artificial intelligence in restaurant menus and promotional materials.
According to Rakesh Ranjan, chief executive officer of Zomato’s food ordering and delivery business, eateries that do not comply with the new guideline will be removed from the platform beginning on September 16.
Taking Immediate Action
There are already 276,000 restaurant partners on Zomato, and only 10% of them use artificial intelligence in any capacity. Of those restaurants, only 2% rely only on photos created by AI. The expanding use of artificial intelligence in this context, on the other hand, is seen by Zomato as a danger to authenticity.
This was implemented by the company since it observed the problem beginning to become noticeable. It is necessary to handle it as soon as possible, according to Ranjan, even though it is not yet widespread. Zomato also asserts that it has developed artificial intelligence capabilities that are able to differentiate between real photographs and images generated by AI with an accuracy rate of 90%.
Assistance for Eateries Going through Change
Zomato is providing inexpensive photoshoots to restaurants through its network partners in order to aid them throughout this changeover. Prices for the service range from INR 4,000 to INR 5,000, with the exact amount being determined by the percentage of the menu that requires photography. To provide a point of reference, the average cost for a small restaurant to cover 70% of its menu with professional photographs is between INR 7000 and 15000.
Ranjan noted that artificial intelligence is still essential in areas such as food categorisation and nutrition labelling throughout the food delivery and rapid commerce sectors, despite the fact that Zomato is taking a firm stance on images generated by AI.
Message From Zomato’s CEO
According to Deepinder Goyal, CEO of Zomato, the company uses a variety of artificial intelligence (AI) techniques to improve the efficiency of its workflows.
The employment of artificial intelligence in the creation of graphics for food on restaurant menus is, however, something that we highly discourage. Artificial intelligence-generated photographs of food and dishes are deceptive, and we have received a great number of client complaints regarding this matter. Customers claim that this results in a breach of trust, which in turn leads to an increase in the number of complaints and refunds, as well as a decrease in ratings.
Since we will be actively beginning to remove such photos from menus by the end of this month, we strongly encourage our restaurant partners to refrain from employing artificial intelligence (AI) for dish photographs in restaurant menus from this point on. In addition, we will no longer accept photos of dishes that were generated by artificial intelligence (to the extent that we are able to identify them through automation).
Swiggy Opting Different Strategy
Alternatively, Swiggy, which is Zomato’s competitor, is taking a different approach by collaborating with Spyne.ai to provide its restaurant partners photographic services that are powered by artificial intelligence.
An accelerator programme is also available through Swiggy, which provides rewards to eateries that meet a predetermined image threshold standard.
Zomato, a food technology firm run by Deepinder Goyal, has made the necessary adjustments to its answer to the Goods and Services Tax (GST) order issued by the assistant commissioner of revenue from the West Bengal government. The order was for a total of INR 9.85 crore from April 2020 to March 2021.
The corporation has decided to file an appeal against the order rather than pay the amount that was ordered. According to the filing that Zomato made with the exchange, the company believes that it has a compelling case on merits and that it will be appealing the order to the relevant authority. In an earlier filing with the exchange, Zomato made a mistaken statement that the company is obligated to pay the GST authorities the applicable sums.
What Exactly Did Zomato State in Its Recent Filing?
Zomato disclosed in its September 13 filing that it had received an order from the Assistant Commissioner of Revenue, Government of West Bengal, for the period April 2020 to March 2021. The order confirmed the demand for GST in the amount of Rs 5,59,54,319/-, with an interest of INR 3,69,67,792/- (Three Crores Sixty Nine Lacs Sixty Seven Thousand Seven Hundred and Ninety Two Rupees Only) and a penalty of INR 55,95,432/- ( Fifty Five Lacs Ninety Five Thousand Four Hundred and Thirty Two Rupees Only).
The demand order has been obtained in regard to the non-payment of the Goods and Services Tax (GST) on delivery charges, as well as interest and penalties accordingly.
Profits for Zomato in the First Quarter of FY25
On the first of August, the food delivery company Zomato made an announcement on its profitability for the quarter that spanned April to June of the fiscal year 2024-25. A company saw its consolidated net profit increase to INR 253 crore in the first quarter of the fiscal year 2025 from INR 2 crore in the same time the previous year.
As per a survey conducted by a media house, it indicated that the company’s profit after tax for the quarter was INR 253 crore. It was reported that Zomato’s revenue from operations in the reporting quarter was INR 4,206 crore, which is higher than the survey poll forecast of INR 3,9826 crore. In comparison, Zomato’s revenue from operations in the same quarter a year earlier was INR 2,416 crore.
According to the analytics provided by the BSE, Zomato has a market cap of INR 2.41 lakh crore. The company is included in the BSE 100 index as one of its parts. According to Goldman Sachs, the market price of Blinkit, the Quick-commerce platform that Zomato purchased in 2022 for a total of $568 million, is currently at $13 billion. In terms of valuation, this translates to a remarkable sixfold gain from the previous year to the current year.
Zomato, a company that specializes in meal delivery, has just announced a huge expansion of its food delivery service on trains. Deepinder Goyal, the CEO of the company, mentioned the new development on X (which was formerly known as Twitter). He stated that the company now serves food directly to more than one hundred railway stations across India.
As a result of Zomato’s cooperation with the Indian Railway Catering and Tourism Corporation (IRCTC), Goyal emphasized the fact that the company has successfully fulfilled more than one million orders during its expansion.
Train Travel Is Set to Undergo a Revolution Thanks to This Partnership
Through this partnership, the goal is to revolutionise train travel by providing passengers with the opportunity to indulge in a wide range of foods without having to leave the convenience of their seats. At the moment, the service is operational in 88 different cities.
Zomato’s Chief Executive Officer for Food Delivery, Rakesh Ranjan, expressed his excitement about the company’s partnership with the Indian Railways Corporation of Transportation (IRCTC). This partnership would enable Zomato to offer culinary delights to train passengers, hence enhancing the overall experience of their journeys. When it comes to the magnitude of its collaboration with IRCTC, the company is convinced that it will have an impact on the lives of millions of customers all throughout India and make travelling by rail an experience that is both convenient and enjoyable.
How the Customer Can Order?
Customers are able to place orders for meals using the Zomato – Food Delivery in Trains service, regardless of whether they are at the station or inside their train cabin. Each and every passenger will benefit from the convenience.
When customers open the Zomato app, they have the ability to search for terms such as “train.” It is also possible for customers who are present at the station to update their location by opening the Zomato app. Once they have done so, they will be taken to a banner where they may input their PNR. Soon after the consumer has submitted their PNR, it will immediately retrieve the customer’s seat and train details, thereby ensuring that the delivery partners deliver the order to the appropriate seat.
Through the utilisation of this cutting-edge method, it is possible to have food orders delivered to the station just as the train is about to arrive. Additionally, customers have the option of picking up their orders from designated pickup points located within the station building. Even in the event that there is a delay in the train, Zomato monitors the train timetables in order to change the delivery times.
The auto ancillary company Hindustan Composite has purchased a minority share in the online food delivery company Swiggy, which is planning to go public shortly. In the days that followed the acquisition of a minority investment in the Bengaluru-based company by Amitabh Bachchan’s family office, this new development has taken place.
According to a disclosure that was submitted through the National Stock Exchange (NSE), the board of directors of Hindustan Composite has struck an agreement with Swiggy to acquire 1,50,000 equity shares, which will result in an investment of INR 5.17 crore.
The report went on to state that as of March 2023, Swiggy’s net value was an impressive INR 9,810 crore, which is equivalent to $1.18 billion. To gain both short-term and long-term benefits, Hindustan Composite intends to complete this minor acquisition by the 30th of November in the year 2024.
Swiggy Planning to Raise INR 3,750 Crore via a Fresh Issue
In May, Swiggy submitted documents for an initial public offering (IPO) through a confidential process. With the help of a new issue of equity shares and an offer for sale of up to an aggregate sum of INR 6,664 crore ($800 million), the company would be able to raise a maximum of INR 3,750 crore ($450 million) through its first public offering. Media sources indicate that the company will shortly submit draft initial public offering documents to SEBI.
In July, Swiggy further launched its sixth employee stock ownership plan (ESOP) liquidity program, which had a total value of $65 million. It claims to have permitted over INR 1000 crore worth of ESOPs liquidity throughout five events, which benefited three thousand and two hundred employees.
In addition, the company that is supported by Prosus strengthened its leadership team by appointing new chief executive officer (CEO) and chief operating officer (COO) positions in the first week of November.
In the first three quarters of the fiscal year 24 (FY24), Swiggy’s revenue was INR 5,476 crore, while the company suffered a loss of INR 1,600 crore. It has not yet submitted audited results for FY24.
According to the data provided by the stock exchange, the competitor of Swiggy, Zomato, is currently valued at $28.3 billion. During the first three months of fiscal year 24 (FY24), the company that is run by Deepinder Goyal reported a revenue of INR 4,206 crores and a profit of INR 253 crores.
Zomato, a food-tech giant, has received a tax demand and penalty order totaling over INR 3.5 lakh, adding to the flood of goods and services tax (GST) warnings it has already been receiving.
On August 31st, Zomato announced in an exchange filing that the Sales Tax Officer of Delhi’s Ward 300 had issued an adjudication order, increasing the GST demand to INR 1.89 Lakh plus interest of INR 1.59 Lakh and any applicable penalty, the amount of which was not specified. The company headed by Deepinder Goyal claimed that it received the GST notification “disputing the eligibility of the input tax credit and interest penalty thereon.”
The filing indicated that the GST demand notice was issued for the period beginning in April 2019 and ending in March 2020.
The Second Notice in a Week
Zomato has been hit with a demand and penalty order for the Goods and Services Tax (GST) for the second time this week. GST notices for around INR 4.59 crore were received by the company on 29 August 2024 from the authorities in Tamil Nadu and West Bengal. Zomato has stated that it intends to proceed with an appeal against the most recent tax demand order, even though it previously stated that it would file an appeal against the previous tax demand orders before the applicable judicial body.
The company stated in response to the most recent demand notice that “despite the fact that the company believes that it has a strong case on merits, the company shall pay the applicable amounts to the GST authorities.” This was in reference to the amount involved and the cost of litigation.
Zomato is now dealing with several tax concerns, which is an important fact to keep in mind. An INR 9.45 crore GST notice was sent to the food-tech major by the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka. This notice was received by the company as of the previous month.
The Gurugram Goods and Services Tax (GST) authority issued a tax demand and penalty notice for INR 11.8 crore to the food delivery company in April, before that. These changes take place at a time when Zomato’s stock is increasing as a result of the company’s growing financial performance. The company’s net profit went from INR 2 crore in the previous year’s quarter to INR 253 crore in the first quarter of FY25. The value of Zomato’s stock has increased by about 102% so far this year.
Zomato, the popular food delivery service, introduced a new feature called Zomato for Enterprise (ZFE) on August 28, to help corporate personnel with orders linked to their work.
Zomato CEO Deepinder Goyal announced the tool, which would simplify the monitoring of company food expenses, in a post on X (previously Twitter). The service’s goal, as pointed out by Zomato, is to make companies’ reimbursement processes easier.
In an X post, Goyal announced, “Excited to introduce Zomato for Enterprise (ZFE),” a tool that helps businesses with food spending.
The majority of Zomato purchases placed by corporate personnel are for business purposes and necessitate reimbursement, which he elaborated on by saying the process can be time-consuming and tedious.
Appreciating this development Puneet Kumar Kanojia, Director Sakshar Media and BollyBites VadaPav stated, “This initiative reflects a deep understanding of the needs of modern businesses. By eliminating the need for traditional reimbursement methods, Zomato is setting a new standard for convenience and operational efficiency in the corporate world.”
What This New Feature Will Offer?
Rather than paying in advance, workers can now charge their food orders to their employers. Companies can also use Zomato for Enterprise to hire new staff, allocate funds for orders, and lay down detailed rules for placing orders.
Goyal has informed onX that ZFE enables employees to directly bill their employer for their business orders without incurring any monetary obligations. Among many other things, ZFE allows businesses to hire staff, establish budgets, and specify ordering procedures. With ZFE, your staff may enjoy more ease while we handle everything else, all while maintaining perfect transparency (SIC).
In addition, he urged others to embrace this new function and brought up the fact that more than a hundred prominent companies are currently utilising ZFE.
“Already, ZFE is being used by more than 100 leading companies. We greatly appreciate their opinion, as it has played a crucial role in shaping this program. Every company’s top executive is cordially invited to give ZFE a shot. To begin, please contact us at enterprise@zomato.com,” Goyal said.
Zomato Completes Takeover of Paytm’s Ticketing Business
As Zomato has been on the edge of expanding its business, this new feature has also been streamlined in accordance with this expansion strategy. According to a story that was published by Startuptalky earlier this month, Zomato has completed the acquisition of Paytm Insider, the entertainment ticketing division of the financial technology giant Paytm. This information was confirmed by both firms in regulatory filings.
To broaden its “going-out” business and create new use cases, Zomato disclosed its intention to buy Paytm Insider the previous week. The acquisition is expected to cost roughly INR 2,048 crore.
Zomato has completed the acquisition of Paytm’s movie ticketing business, Orbgen Technologies Pvt Ltd (OTPL), for about INR 1,264.6 crore. Additionally, Zomato has purchased Paytm’s events ticketing division, Wasteland Entertainment Pvt Ltd, for approximately INR 783.8 crore.
The newly purchased companies will shortly be rebranded under a new going-out app named “District,” which is scheduled to be developed and released within the next few weeks.
Intercity Legends, a Zomato service that brought famous food items from 10 Indian towns to customers all throughout the nation, will be shutting operations immediately. The service was momentarily halted and then reinstated in July with some adjustments to make orders more viable, but now it has been stopped.
According to a tweet by Zomato CEO Deepinder Goyal on social media site X (formerly Twitter), the company has chosen to immediately terminate the Zomato Legends service after two years of testing and failing to achieve product market fit.
Update on Zomato Legends – after two years of trying, not finding product market fit, we have decided to shut down the service with immediate effect.
It Is Not the First Time That Firm Opted for Shutdown
At a time when Zomato is branching into a variety of other competing sectors in order to increase revenue and consolidate its position in the market, Intercity Legends has been shut down. In the beginning, when Intercity Legends was first released in 2022, there was no minimum order threshold. However, in order to increase profitability, a minimum order value of INR 5,000 was implemented. Zomato determined that the initiative did not make any sense from a financial standpoint.
This is yet another service that Zomato has terminated; in the past, the company has also terminated previous trial programmes. The logistics service known as Xtreme, which was situated in Gurugram and enabled merchants to send and receive small packages, was cancelled by the corporation since it did not produce the results that were desired.
Zomato Legends at the Time of Launch
At the time when the intercity service was initially introduced, the corporation had a positive outlook on the offering. It is said that a jewel can be found in every nook and cranny of India.
“The sky is the limit to how big Intercity Legends can become,” the business had stated in a blog. “With over a hundred airports and a rich spread of the most iconic dishes that India has to offer, the number of possibilities is virtually limitless.”
In the meantime, Zomato is devoting resources and attention to other areas of the company. The meal delivery giant Zomato announced on August 21 that it will purchase Paytm’s entertainment and ticketing business for a total of INR 2,048 crore in an all-cash transaction. This comes as the food delivery giant hopes to grow its footprint in the ‘going-out’ market, while the troubled fintech major seeks to concentrate on its core financial services offerings with the acquisition.
Zomato on the Financial Front
In terms of revenue, Zomato has grown substantially. In the first quarter of the fiscal year 2024-25 (Q1FY25), the company’s consolidated profit increased significantly from the previous quarter’s INR 175 crore to INR 253 crore. Zomato achieved its first ever profit in the same period last year (Q1FY24), albeit a small one of INR 2 crore.
Zomato’s operational revenue also increased significantly, increasing from INR 2,416 crore in Q1FY24 to INR 4,206 crore in Q1FY25, a 74% year-on-year rise. The prior quarter’s reported revenue for the company was INR 3,562 crore. Although revenue increased to INR 3,636 crore in Q1FY24 and INR 2,612 crore in Q1FY24, overall expenditures increased to INR 4,203 crore in Q1FY25.
Nitin Konde
